Assume that a company wants to separate a mixed cost into its variable and fixed elements for cost estimation purposes. It provided the following information: Units Mixed Produced Cost Month January 1,050 $11,045 February 1,150. $11,870 Marchi April May June July August Assuming the company produces 1,200 units in September, using least-squares regression, the estimated total amount of the mixed cost would be closest which of the following? (Note: Round your estimate of the variable cost per unit to the nearest penny.) 1,100 $11,560 1,250 $12,100 950 $10,800 1,280 $12,210 990 $10,970 1,010 $11,005 Multiple Choice OOOO O $11.985 $12,002 $11,950 O $11,908
Assume that a company wants to separate a mixed cost into its variable and fixed elements for cost estimation purposes. It provided the following information: Units Mixed Produced Cost Month January 1,050 $11,045 February 1,150. $11,870 Marchi April May June July August Assuming the company produces 1,200 units in September, using least-squares regression, the estimated total amount of the mixed cost would be closest which of the following? (Note: Round your estimate of the variable cost per unit to the nearest penny.) 1,100 $11,560 1,250 $12,100 950 $10,800 1,280 $12,210 990 $10,970 1,010 $11,005 Multiple Choice OOOO O $11.985 $12,002 $11,950 O $11,908
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Assume that a company wants to separate a mixed cost into its variable and fixed elements for cost estimation purposes. It provided the following information:
Month
Units Mixed
Produced Cost
1,050 $11,045
January
February 1,150 $11,870
March
$11,560
1,100
1,250 $12, 100
April
May
950 $10,800
1,280 $12,210
June
July
990
$10,970
August
1,010 $11,005
Assuming the company produces 1,200 units in September, using least-squares regression, the estimated total amount of the mixed cost would be closest which of the following? (Note: Round your estimate of the variable cost per unit to the nearest
penny.)
Multiple Choice
O $11,985
O $12,002
O $11,950
O $11,908
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